Decarbonization in waste recycling industry using digitalization to promote net-zero emissions and its implications on sustainability

Abstract

Digitalization and sustainability have been considered as critical elements in tackling a growing problem of solid waste in the framework of circular economy (CE). Although digitalization can enhance time-efficiency and/or cost-efficiency, their end-results do not always lead to sustainability. So far, the literatures still lack of a holistic view in understanding the development trends and key roles of digitalization in waste recycling industry to benefit stakeholders and to protect the environment. To bridge this knowledge gap, this work systematically investigates how leveraging digitalization in waste recycling industry could address these research questions: (1) What are the key problems of solid waste recycling? (2) How the trends of digitalization in waste management could benefit a CE? (3) How digitalization could strengthen waste recycling industry in a post-pandemic era? While digitalization boosts material flows in a CE, it is evident that utilizing digital solutions to strengthen waste recycling business could reinforce a resource-efficient, low-carbon, and a CE. In the Industry 4.0 era, digitalization can add 15% (about USD 15.7 trillion) to global economy by 2030. As digitalization grows, making the waste sector shift to a CE could save between 30% and 35% of municipalities' waste management budget. With digitalization, a cost reduction of 3.6% and a revenue increase of 4.1% are projected annually. This would contribute to USD 493 billion in an increasing revenu…